Relevant Life Cover for Directors
Meet the tax-friendly alternative to life insurance
Benefit your business, your employees and your family by choosing a policy that’s ideal for independent professionals and company directors.
Speak to an expertCustomers love us! Don't take our word for it. Check out what some of them have to say...
See the benefits for yourself
Watch our video to understand the details of Relevant Life Insurance. Speak to an expert
Why choose Relevant Life cover?
Unlock a Valuable Death-in-Service Benefit
Relevant Life Insurance provides a tailored death-in-service benefit, ensuring both directors and employees feel valued. It’s a tax-efficient way to protect your team and their families while enhancing loyalty and engagement.
Secure Substantial Savings for Directors
By arranging life cover through your company, directors can significantly reduce personal insurance costs. This setup allows businesses to provide meaningful protection while saving potentially hundreds or thousands of pounds annually.
Avoid Impact on Other Benefits
HMRC does not classify Relevant Life cover as a benefit-in-kind. This means it won’t interfere with any existing benefit packages, ensuring a seamless addition to your financial planning.
No National Insurance Contributions
Unlike other forms of insurance, premiums for Relevant Life Insurance aren’t subject to National Insurance contributions, providing further savings for both employers and directors.
Receive Corporation Tax Relief
Your business can claim Corporation Tax Relief on the premiums, making Relevant Life an even more cost-effective solution for directors seeking comprehensive protection.
Get Flexible Tax-Free Payouts
Benefits from Relevant Life Cover are tax-free and placed in trust for beneficiaries, meaning there are no inheritance tax implications. The funds can be used without restrictions, offering peace of mind for your family’s future.
Note: Tax guidance provided is based on current HMRC regulations and may be subject to change. Professional advice is recommended to ensure compliance and to maximise tax benefits.
Speak to an expert
Get your guide to Relevant Life Insurance
Learn more about who Relevant Life Insurance is for and the tax and business benefits it offers.
Get the guide
Speak to our expert team about Relevant Life Insurance
Fill out the form below to arrange a time to speak to one of our insurance experts.
FAQs
Am I eligible to take out a Relevant Life Insurance policy?
You must have a limited company to benefit from the tax savings that a relevant life insurance policy offers. If you do not have a limited company then standard Life Insurance will offer you the protection you need.
Do I get any money back if I don't die before the Relevant Life Insurance policy term ends?
No. There’s no cash value at any time. Just like standard Life Insurance at the end of your Relevant Life Insurance policy term you stop making payments and your cover ends.
Can my mortgage be covered with Relevant Life Insurance?
If you have an interest-only mortgage, your outstanding mortgage loan stays the same until you repay it at the end of the mortgage term. Level Relevant Life Insurance could cover this type of mortgage.
How does Relevant Life Insurance work? What do I need to know?
Like standard Life Insurance, it provides your loved ones with a large tax-free, one-off payment, or monthly payments if you pass away. It can be used to pay the mortgage off or help your family with living expenses. You are covered only for the duration (term) of the policy and cover only lasts while you keep up monthly premiums. Monthly payments can be reduced by combining this with a Critical Illness policy.
The key difference between Life Insurance and Relevant Life Insurance is that with Relevant Life Insurance the cost of the premiums is moved from your own pocket to your company expenses. This saves you tax and reduces the cost of your monthly premiums.
Additionally, this is not treated as a benefit-in-kind; the premium is not included as a P11D benefit, nor are premiums subject to National Insurance payments for the employer or employee.
There is significant tax relief with a Relevant Life plan and your business can claim Corporation Tax Relief on the premiums. Plus, the payout itself is tax-free.
Can I cancel my Relevant Life Insurance policy at any time?
Yes. You have a 14-day cooling-off period from your policy start date, or from when you get your policy documents (whichever is later), to change your mind. If you want to cancel within this time, we’ll refund any premiums you’ve paid. Remember, there’s no cash value and, if you cancel your policy, you won’t be able to make a claim.
What's the difference between Relevant Life Insurance and Over 50s protection?
The main difference is that Relevant Life Insurance is a tax-efficient term policy, so it covers you for a specific amount of time, while over-50 life insurance is a whole of life policy, so it covers you for the rest of your life.
Typically to take out a Relevant Life Insurance policy you need to be aged between 18 and 77 to apply, and your coverage stops at the end of the policy term. You choose a cover amount, and if you want your cover to remain the same, be protected from the effects of inflation, or decrease over time broadly in line with a repayment mortgage or loan. You can take out a single or joint life insurance policy.
If you’re not sure which one might be right for you, speak to a Broadbench financial adviser.